Marketing Management Marketing Plan.pdf

Conclusion...11 References...a Appendix...b Appendix 1: Porter’s five forces...b Appendix 2: Key success factors...c Appendix 3: Competitors analysis in Vietnam vegan sheet masks...d App

BỘ TÀI CHÍNH

- -MARKETING MANAGEMENT MARKETING PLAN

Sinh viên thực hiện: Nguyễn Thị Lan Nhi

Đỗ Ngọc Thanh Ngân Nguyễn Thuỵ Như Khanh

Thành phố Hồ Chí Minh, 2021

TRƯỜNG ĐẠI HỌC TÀI CHÍNH – MARKETING

KHOA MARKETING

1 Executive Summary 1

2 Introduction 1

3 Situation analysis 1

3.1 Situation Analysis 1

3.1.1 Analysis of vegan skincare industry in Vietnam 1

3.1.2 Macro Environments 2

3.1.3 Market trends 3

3.2 Competitors 3

3.3 SWOT Analysis 4

4 Segmentation & positioning strategy 5

4.1 Market segmentation 5

4.2 Target Market 6

4.3 Positioning & Estimate market share 6

4.3.1 Positioning Statement 7

4.3.2 Competitive advantage 7

5 Marketing Mix Strategies 8

5.1 Product strategy 8

5.1.1 Five product levels 8

5.1.2 Product’s attributes 8

5.1.3 Value propositions product 9

5.1.4 Packaging product 9

5.1.5 Product support services 9

5.2 Pricing strategies 9

5.2.1 Psychological pricing 9

5.2.2 Penetration pricing 9

5.2.3 Bundle Pricing 10

5.2.4 Promotional Pricing 10

5.3 Distribution strategy 10

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5.3.1 Online shopping website & Cocoon Việt Nam official website 10

5.3.2 Cocoon store in shopping centre 10

5.3.3 Agency 10

5.3.4 E-commerce 10

5.4 Marketing communications strategy 10

6 Action plan 10

7 Conclusion 11 References a Appendix b Appendix 1: Porter’s five forces b Appendix 2: Key success factors c Appendix 3: Competitors analysis in Vietnam vegan sheet masks d Appendix 4: Five products level e

8 Financials f 8.1 Break-even analysis f 8.2 Sales Forecast f 8.3 Expense Forecast g

9 Controls: h 9.1 Implementation h 9.2 Marketing Organization h 9.3 Contingency Planning h

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- Coverage at more than 300 current retail stores of Cocoon.

- When mentioning Cocoon, customers will immediately think of the leadingnumber of vegan cosmetics in Vietnam

- Increase 35% brand awareness among target customers

Financial Objectives

- Revenue is expected to reach 6 billion VND in its first year of launch

- Reduce advertising and communication costs each quarter while retainingpotential customers

3 SITUATION ANALYSIS

3.1 Market Summary

3.1.1 Analysis of vegan skincare industry in Vietnam

Industry revenue and growth

Vietnam skin care products market size reached $854.3 million in 2019 and isexpected to reach $1,922.4 million by 2027, achieving a CAGR of 11.7% from 2021 to

2027 The skin care products market has an opportunity to increase revenue by

$1,154.25 million between 2020 and 2027 (Kale & Deshmukh, 2020) Risingdisposable income and growing young population are the key factors driving theproduct market Vietnamese skincare products grow In which, the most potentialcustomer segment in the future is Generation Z, accounting for 39.08% of the totalpopulation Overall, these factors have increased the demand for skincare products bydomestic consumers

Industry Attractiveness

Porter’s five forces model is applied to analyze the sheet masks industry’sattractiveness in Vietnam Appendix 1, it shows that the nature of competition in sheetmasks industry contributes to a fast pace movement in Vietnam Hence the sheetmasks industry is considered to be attractive as the industry is expected to continuallygrow

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3.1.2 Industry trends

First, cosmetic and skincare industry has been growing significantly along withthe rapid improvement in living standards in Vietnam Consumer tastes andpreferences with growing disposable income raise level of sophistication towardspremium skincare products Premium brands become more attractive while mass skincare products decline Skincare producers have to increase their production volume toserve the demand (Euromonitor International, 2018) The key success factors (KSF)for facial masks industry in China is provided in Appendix 2

=> This affects people's disposable income, leading to a decrease in the consumerprice index This is a disadvantage for the skin care industry as well as CocoonVietnam, because when disposable income is reduced, consumers will be lessconcerned with beauty needs

Social Analysis

In general, Vietnamese people have the psychology of buying foreign goods notonly because of the quality and design but also the brand reputation of foreignbusinesses, and at the same time, Vietnamese goods have not yet created trust amongconsumers for many reasons In the minds of young people of the 9x, 10x generation,Vietnamese cosmetics are images of poorly advertised cream mixes, and cosmetics ofunknown origin widely sold on the market This has greatly affected the confidence ofVietnamese consumers

=> This is a concept that adversely affects Cocoon, especially those directlyrelated to skin care products

Technological Analysis

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Elements of advanced and modern cosmetic production lines will be an importantbasis to help cosmetic manufacturing and processing units get the best qualityproducts, bringing high efficiency to consumers.

=> Cocoon products are born in a modern, closed line, meeting the standardsaccording to cGMP of the Ministry of Health of Vietnam

Environmental Analysis

Vietnam's climate is hot and humid, with monsoon natural disasters frequentlyoccurring This greatly affects the preservation and transportation of Cocoon'sproducts

On the other hand, air pollution in Vietnam is quite serious and working outdoors

or in front of a computer for a long time, ultraviolet rays and computer radiation arevery harmful to the skin Therefore, it is very important to take care of the skin toprotect the skin

- Decree 98/2020/ND-CP stipulating penalties for administrative violations incommercial activities, production and trading of counterfeit and banned goods andprotection of consumers' interests This is both beneficial for consumers to avoidcounterfeiting and to avoid losses to Cocoon

3.3 Competitors

Appendix 3 details a description of Cocoon's direct competitors Cocoon'sindirect competitors are mask brands that, although not vegan, still meet the skincareneeds of customers 4 brand well-known competitors in the Vietnamese market areVedette, The Face Shop, Naruko, and Mediheal

3.4 SWOT Analysis

SWOT analysis is indicating the combination of Market strength, Weakness ofthe company and opportunity, threats of the competitors in the competitive market ofthe world

- Cocoon is also considerable competion

compared to other celebrated and long - - New brand, unfamiliar with some customer parts

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standing vegan cosmetic brands in

Vietnam market

- Cocoon products gain cGMP standards

of the Ministry of Health of Vietnam and

certified “Animal test-free & Vegan” by

PETA

- Cocoon is the first Vietnamese cosmetic

brand to be approved by Leaping Bunny

- Cruelty Free International's

commitment to not testing on animals

- Dense distribution network with up to

300 sales points at Watsons stores,

Guardian, Beauty Garden, Hasaki,

Cocoon website, even e-commerce

platforms

- Have not advertised the product widely

- Cocoon was born in the era of

increasingly advanced technology to

ensure product safety and cost savings

- The 9x and 10x generations in Vietnam

are increasingly leading a more active

and modern lifestyle, easily accepting

new things as well as new brands like

Cocoon

- The environmental situation is

increasingly alarming, so the

eco-friendly lifestyle is on the throne

- Air pollution, ultraviolet rays and

computer radiation motivate people to

put more effort in taking care of their

skin

- The negative impact of the

Covid-19 pandemic will make somepeople no longer interested inskinning care

- Because of incalculabe appearance

of unknown origin skin careproducts from Vietnamesebusinesses, cocoon will be equatedwith those brands

- Vietnam's climate is hot and humid,and monsoon disasters often occurthat significantly affects thepreservation and transportation ofCocoon's products

4 SEGMENTATION & POSITIONING STRATEGY

Young, high school

kids and university

problems Eco-friendly

lifestyle

Highly influenced by

trends, family and

friends’ opinion and

media (eg Make-up

tutorial on YouTube)

Concerns andconsciousness of healthand beautyappearances

Prefer more radiant skinand younger andhealthier looks

Prefer products withnatural ingredient

Prefer brands that provideexpert knowledge of skincare and tailored to theirskin type, especially interms of restorativeproperties.Likely to stick with usedproducts for a period oftime

Behavioural Benefit sought

Skin beauty,relaxation, more

confidence

Skin maitain,relaxation, moreconfidence

Skin improvement, aging, more confidence

anti-Loyalty Tend to switch to

cheaper products

Loyal to one orseveral brands thatserved theirsatisfactory and used

Loyal to one specificbrand that served theirsatisfactory and used forover a period of time

Price

sensitivity

High Seeking for the

products with low

prices that suitable

with their incomes

Medium Seeking forpremium productsthan mass products

Low Seeking for anoptimal and high-endproduct.Market segmentation could be classified by four segmentation variables;geographic, demographic, psychographic and behavioural segmentations

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possess natural, humanitarian, easy-going, and refreshing values that will make thecustomers feel comfortable and contribute more radiant skin Besides, vegan cosmeticsnot only help them take care of their skin but also help them get closer to an eco-friendly "green" lifestyle Hence the evidence above illustrates that the target segmentchosen for Cocoon vegan sheet masks will be the best suitable and attractive forfemales and males aged 17 to 24.

4.3 Positioning & Estimate market share

These days, there are several vegan cosmetics brands already existing in theVietnam market such as Klairs, Innisfree, The body shop, Cocoon, Sukin, Round Lab,COSR But only Klairs, Innisfree and The body shop have produced vegan sheetmasks, so they are direct competitors to Cocoon's sheet mask products Appendix 3shows competitor’s description in detailed Based on the primary data source (30samples online survey), the position of Cocoon’s vegan sheet mask in the skincareindustry will be discussed by using the perceptual map as shown in Figure 1

Figure 1: Conceptual map for vegan sheetl masks in Vietnam skincare industry

According to Figure 1, we will price Cocoon's sheet masks lower than otherbrands to match our targeting segment Customers will benefit from purchasing highquality Cocoon’s vegan sheet masks that are non-toxic at considerable price, whereasother brands offer customers with quality products but may be higher price Cocoon'svegan sheet mask will be able to compete in the industry by positioning itself as aniche market to gain a competitive advantage through its strong belief and value in the

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benefits of natural ingredients that do not contain any ingredients partly from animalsand not tested on animals.

4.3.1 Positioning Statement

"From familiar natural ingredients that are carefully cultivated and harvested bythe hands of Vietnamese farmers, Cocoon creates and develops 100% vegan skin careproducts."

4.3.2 Competitive advantage

Valuable: the product not only meets the needs of customers' skin care, but also

gives customers the feeling that they are contributing to the protection of theenvironment and the ecosystem

Superiority: serving many different audiences: both men and women can use it.

At the same time meet different needs for each individual skin type

Distinctiveness: this paper mask product has built-in convenience in use Until

now, Cocoon has never released this product

Profitability: taking advantage of input materials, technology, and characteristics

of mask jars The cost is also reasonable Therefore, ensuring revenue and profit of theunit will increase rapidly in a short time

Brand mask: Help users form a humane lifestyle, not for themselves but to

harm small, innocent animals

5 MARKETING MIX STRATEGIES

Cocoon aims to focus on both women and mens’ beauty and improvement oftheir skin In the marketing strategies, Cocoon’s vegan sheet mask that will entervegan skincare market in Vietnam will be analysed

5.1 Product strategy

5.1.1 Five product levels

Five products level (provided in Appendix 4) will be identified to satisfycustomer’s needs The core benefit of Natio’s mask is improving human beings’quality of skin and more beauty and its basic product is its natural ingredient with100% vegan skincare products With the mission: “Bringing you a healthy, youthfuland vibrant skin from simple and close ingredients that you eat every day.”

5.1.2 Product’s attributes

Product quality

Using natural cellulose masks as raw masks: is a line of masks made fromcellulose material With the orientation to create environmentally friendly products, thecellulose material that Cocoon uses this time creates a line of Cocoon vegan sheetmasks that are biodegradable when buried in the soil The product does not use

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parabens and "addictive" corticosteroids, does not use mineral oil, hydrogen peroxide,triclosan, phthalate, luminescent substances 100% of products before being put on themarket have to go through a process of 12-24 months of testing by tests in thelaboratory (in-Vitro test) or on volunteers (in-Vivo test).

Product Features

The difference from UNIQUE DESIGN: strong mask structure, 3 layers of

ultra-thin, close to the face This is also an innovative design that can hold moresolution than a regular paper mask

The difference from extremely good AFFECT: 80-100nm diameter biocell

fiber should be easy to apply to the skin without much manipulation, comfortablemovement during use

The difference from SUPPLYING SUPPLY: natural bio-nano structure should

be able to retain 10 times more nutrients than conventional fiber/paper

5.1.3 Value propositions product

5.1.4 Packaging product

Packaging: The outer packaging of the Cocoon paper mask has a minimalist

design, using images of pure Vietnamese ingredients such as green squash, rose petals,and turmeric Users will easily feel the Vietnamese soul through the packaging On thetop left of the packaging is the Cocoon logo

Color: Gold color represents luxury, creativity and belief in a bright future of

Vietnamese cosmetics

Labeling: provide complete information about ingredients, instructions for use,

expiry date as well as the place of manufacture

Figure 2: Packing of Cocoon’s vegan sheet mask

5.1.5 Product support services

Fresh customers’s service

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